An auto spare parts store business in South Africa is very lucrative and profitable. Car ownership is increasing significantly in South Africa every year. A lot of South Africans are purchasing new and used cars everyday, and others have existing vehicles which also need to be maintained. There are over 12 million registered cars in South Africa, this is according to data from National Administration Traffic Information System (eNatis). Every year, more than 400 000 new vehicles are sold in South Africa. This is according to data from the National Association of Automobile Manufacturers of South Africa (Naamsa). This creates a huge demand for motor spares. Consider how large a market there is that requires servicing and maintenance, and how much starting a car auto parts business will make you a very successful entrepreneur in South Africa.  Every automobile requires frequent part changes during its entire lifespan so setting up such a business can be profitable.   This article will outline how to start a motor spares business in South Africa, and the auto spare parts store business plan – PDF, Word and Excel.

Market Research

It’s important that you carry out market research before you start the motor spares business. Important decisions to make include deciding on the location of your business, the products you will offer, your target market and the size of your business. Understand your target market, and what kind of products they want. Identify and study your competition. Assess the competition at your proposed location. Through carefully studying your competition and customer trends you will find a gap in the market and also find ways to offer better services. You need all the information you can get to formulate a great customer experience model that won’t be easily contested. You should also have a good motor spares business plan before you venture into this business.

When researching the market, you must segment it based on your potential customers’ demographics. It is important to get first-hand information about the market’s conditions and the opportunities in your area. After determining your target market, the next step would be to outline the products you will offer your customers. Researching your market will also help you know who your competition is, and it will enable you to figure out ways to develop strategies that work. In addition, by researching the market, you can find out what the popular spare parts brands are in the local market. This will help you find out more about the different models of bikes, motor vehicles, and other heavy-duty vehicles that have a high population density in your area. It is important to note that market research is done on a regular basis. The information you get from conducting this research will help you make more informed decisions about your existing operations and activities. You can set competitive prices, find affordable distribution channels, and identify gaps in the auto parts market.

Location & Premises for Motor Spares Business

Location is a big factor in determining the success of your auto spare parts business. You should locate your auto parts store business in a place where there are many people with cars. It would be unwise to locate your motor spares store business in a rural area which has few car owners. There are several possible locations: shopping centres & malls, industrial areas, urban areas and in the CBD. People can always come to your motor spares store because of the quality service and the type of parts you provide.You will need premises which include the auto spares store, back offices, and a warehouse for your products.  Your premises should have sufficient parking space for your customers. Your auto spares business plan should cater for the costs of renting or buying premises.

Products for Auto Parts Store Business

The kind of auto parts products to sell will depend on your target market and business strategy. There are different niches you can target. Some specialise with spares for one make eg Toyota spare parts. Others may choose to specialise in one product line eg cooling systems, suspension parts, braking system, gearboxes, engines etc. Some motor spare businesses in South Africa focus on quick replacement parts eg. high pressure pumps, brake pads, shocks and shoes. You can also sell a variety of products without specialising in anything. The products which you can sell in your auto spare parts store include Suspension parts, Body Parts, Ball Joints , Belts , Oil Pumps , Tyres, Fuel Pumps , Clutch Plates , Pressure Plates , Fenders , Bonnets , Radiators , Ignition Plugs , Seat Covers , Mountings, Bushes & Shock Pads , Filters , Bearings, Discs & Hubs , Rubber Boots , Brake Pads & Brake Shoes , CV Joints, Shock Absorbers , Lubricants  and Batteries. The products can be sourced from local suppliers and international suppliers.

motor spares store business plan

Auto Spare Products

Competitive Analysis

The automotive components sector takes up a significant share of the total production capacity in the South African manufacturing industry. The auto spare parts sector is a highly diversified industry with engine and auto component manufacturers, aftermarket parts manufacturers, a number of dealers, suppliers, and various retailers. In order to build a successful auto spare parts business, you need to stand out from your competition, and this requires knowledge of who your competitors are and what they offer. A competitive analysis will help you with this information. A competitive analysis is a study of your competitors’ products, services, as well as sales tactics. With a competitive analysis, you can evaluate your competitors’ strengths and weaknesses. It is important to note that a conducting a competitive analysis should be done regularly. This is because it will help you see your own strengths and any potential barriers to growth that you may encounter. A competitive analysis will also keep your business proactive instead of reactive. Many businesses operate based on preconceived ideas regarding their competitors and market landscape, but those ideas may not be true or may be obsolete. When conducting a competitive analysis, you should study your direct and indirect competitors. Find out who their clients are, what the pricing is like, and how they promote their business.

Staff & Management

The number of employees you need will depend on the size of your auto spares store business. The is need for finance/accounting personnel who will be responsible for all the day to day transaction accounting for the motor spares store business. This will include the tracking of all transactions and the management of cash flow, and ensuring there are enough funds available to meet the day to day payments.

Operations & logistics personnel are responsible for coordinating with suppliers and sourcing all the products which will be sold in the auto parts store, and arranging delivery of sold products to customers. They are also responsible for inventory control, ensuring that the shop has all the products in stock and in the right quantities, and determining when to place new orders. You also require cashiers and shop assistants. Your auto spare parts store business plan should cater for the salaries of your employees.

Knowledgeable staff members will add value to your team by helping the customers buy the correct products. There is a wide range of products available at motor spares shops, customers often get confused. Anyone can easily find themselves making small blunders by buying the wrong product. If you have inexperienced staff members on your team their training program should focus more on learning about the different products sold in the store so they are able to give informed advice to customers.

Cash Flow and Inventory Management

You should account for all the business cash inflows and cash outflows. Ensure that you have a good inventory management system, so that you don’t run out of products which are needed by clients. When starting your motor spares business, it maybe difficult to stock your store with all products because of limited capital. You can start with quick moving products, and ensure that you reinvest all the money into the business. With time, you will be able to stock a variety of products in your auto spares store. Profits will keep rolling into the business if you offer products which are needed by your target market.

Marketing Plan

A marketing plan is one of the most important business tools your business can have. A marketing plan is usually the missing link between the strategic direction of your motor spare parts business and the delivery of results. There are a number of activities or ideas you can consider when creating your auto spare parts marketing plan. One of them is sharing some tips and information on social media to attract new customers. You can even hold a car show where people can gather and watch you in action. The exposure will pay off since shows connect with local enthusiasts, and the buzz will attract new clients. You can also contribute parts and/or funds to a project vehicle to gain some more exposure. Consider collaborating with an automotive company for similar promotions. Somewhere, there may be another company trying to reach the same market that your company is trying to reach. Another important factor to consider in your marketing plan are customer reviews. Do not underestimate the power of consumer reviews because these testimonials are incredibly influential. Studies have shown that customers will consider reviews first before making a purchase, especially if they haven’t done business with the company before. It is important to develop a marketing plan if you want your business to grow. Think of a marketing plan as the engine that drives your sales.

Market for Auto Spares Business

There is a huge market for auto parts products in South Africa due to the increasing car ownership. Potential customers for your motor spares business include individuals, companies, organisations, transport companies, panel beating and spray painting companies, insurance companies, garages, mechanics and auto repair companies. It’s wise to establish a customer base which gives you repeat business. If you offer quality products at good prices, customers will always come back to your motor spares store. Build customer loyalty by giving discounts to your regular customers. Give quality service. Advertising is also required to attract more people to your auto spare parts store, thus boosting sales. Advertising can be via word of mouth, flyers & brochures, online advertising, social media marketing, print media, and sponsoring the community  amongst other ways.  


For an in-depth analysis of the motor spares store business in South Africa, purchase our auto spare parts store business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the auto parts store business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a auto parts business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the motor spares business plan will lay out all the costs involved in setting up and running the motor spares business. The business plan is designed specifically for the South African market.


The motor spares store business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your auto spares store business
  • As a motor spares store project proposal
  • Assessing profitability of the auto spare parts stores business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation


The business plan includes, but not limited to:

  • Market Analysis
  • Industry Analysis
  • 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
  • Marketing Strategy
  • Risk Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some South Africans in the auto spares business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your auto parts store business in South Africa
  • Directory (Contact details of motor spares products suppliers)

The Auto Spare Parts Store Business Plan package consist of 4 files

  1. Auto Spare Parts Store Business Plan – PDF file (Comprehensive – 76 pages)
  2. Auto Parts Store Business Plan – Editable Word File (Comprehensive – 76 pages)
  3. Auto Spares Store Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 46 pages)
  4. Auto Spare Parts Store Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change eg the markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 


We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.

We have several payment methods which you can use.

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The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on and we will assist you.

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If you want to purchase multiple business plans at once using Instant EFT then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on and we will assist you.

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